Pratt & Whitney Becomes Majority Program Shareholder in IAE: Closes on Deal to Purchase Rolls-Royce Program Share in the IAE Collaboration
- MTU Increases Program Share to 16 Percent
- P&W President David Hess Named IAE Chairman
- Jon Beatty Named New IAE President
LONDON, July 9, 2012 /PRNewswire/ -- FARNBOROUGH AIRSHOW -- Today, Pratt & Whitney and IAE International Aero Engines (IAE) shareholders, Japanese Aero Engines Corporation and MTU Aero Engines GmbH, announced details of the June 29 closing of Pratt & Whitney's agreement to purchase Rolls-Royce's program share in the IAE Collaboration. Pratt & Whitney has increased its program share to 61 percent and MTU Aero Engines has increased its program share from 11 to 16 percent via a separate risk revenue sharing agreement with Pratt & Whitney. In addition, IAE announced that the IAE board of directors has named Pratt & Whitney President David Hess Chairman of the board of directors and Jon Beatty as the new IAE president. Pratt & Whitney is a division of United Technologies Corp. (NYSE: UTX).
"The agreement positions IAE, Pratt & Whitney and its shareholders to best serve all A320 customers by allowing more flexible offerings among A320 aircraft families resulting in potential advantages and cost-savings with a united delivery to market for the V2500 and PW1100G-JM engines," said Pratt & Whitney President and new IAE Chairman of the Board, David Hess. "Rolls-Royce remains an important part of the IAE consortium and will continue to significantly support the program."
The program share purchased from Rolls-Royce is held by a Pratt & Whitney wholly-owned subsidiary named Pratt & Whitney Aero Engines International GmbH (P&WAEI) headquartered in Luzern, Switzerland. P&WAEI will assume responsibilities and obligations in the IAE collaboration for most parts and sourcing previously handled through Rolls-Royce.
IAE is a multinational aero engine consortium whose shareholders now are Pratt & Whitney, Pratt & Whitney Aero Engines International GmbH, Japanese Aero Engines Corporation and MTU Aero Engines GmbH. To date, over 5,000 V2500 engines have been delivered and nearly 2,000 more engines are on order with close to 200 customers around the world.
Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines. United Technologies, based in Hartford, Conn., is a diversified company providing high technology products and services to the global aerospace and commercial building industries. Please visit www.utcaero.com for news from Pratt & Whitney and United Technologies at the Farnborough Air Show 2012.
This release includes "forward looking statements" concerning future business opportunities and other matters involving this engine that are subject to risks and uncertainties. Important factors that could cause actual results to differ materially from those anticipated or implied in forward looking statements include weakness in global economic conditions and in end-market demand for new aircraft, including the aircraft discussed in this press release; as well as company-specific items including the ability to achieve innovative designs and product performance benefits at planned levels and within the anticipated time frames; challenges in the design, development, production and support of advanced technologies and new products including the engine discussed in this press release; and delays and disruption in delivery of materials and services from suppliers. For information identifying other important economic, political, regulatory, legal, technological, competitive and other uncertainties, see UTC's SEC filings as submitted from time to time, including but not limited to, the information included in UTC's 10-K and 10-Q Reports under the headings "Business," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Cautionary Note Concerning Factors that May Affect Future Results," as well as the information included in UTC's Current Reports on Form 8-K.
SOURCE Pratt & Whitney